BOSTON, Nov. 24, 2020 /PRNewswire/ -- Eaton Vance
Corp. (NYSE: EV) today reported earnings per diluted share of
$1.20 for the fiscal year ended
October 31, 2020, compared to
$3.50 per diluted share in the fiscal
year ended October 31, 2019.
The Company reported adjusted earnings per diluted
share(1) of $3.29 for the fiscal year ended October 31, 2020, a decrease of 1 percent from
$3.32 of adjusted earnings per
diluted share in the fiscal year ended October 31, 2019.
In the fiscal year ended October 31,
2020, adjusted earnings exceeded earnings under U.S.
generally accepted accounting principles (U.S. GAAP) by
$2.09 per diluted share, reflecting
the reversal of $108.6 million of
accelerated stock-based compensation expense and $6.3 million of other costs recognized in
connection with the proposed acquisition of Eaton Vance by Morgan
Stanley announced on October 8, 2020,
the reversal of $122.2 million of
impairment losses recognized on the Company's investment in
Hexavest Inc. (Hexavest), the reversal of $9.0 million of net excess tax benefits related
to stock–based compensation awards, the add-back of $7.6 million of management fees and expenses of
consolidated sponsored funds and consolidated collateralized loan
obligation (CLO) entities (collectively, consolidated investment
entities), and the add-back of $6.6
million of net losses of consolidated investment entities
and the Company's other seed capital investments. Earnings under
U.S. GAAP exceeded adjusted earnings by $0.18 per diluted share in the fiscal year ended
October 31, 2019, reflecting the
reversal of $22.9 million of net
gains of consolidated investment entities and other seed capital
investments, the add-back of $8.1
million of management fees and expenses of consolidated
investment entities, and the reversal of $5.4 million of net excess tax benefits related
to stock-based compensation awards. All adjustments are reflected
net of applicable tax.
The Company reported earnings per diluted share of $(0.31) for the fourth quarter of fiscal 2020,
which compares to $0.96 per diluted share in the fourth
quarter of fiscal 2019 and $(0.01)
per diluted share in the third quarter of fiscal 2020.
The Company reported adjusted earnings per diluted share of
$0.88 for the fourth quarter of
fiscal 2020, a decrease of 1 percent from $0.89 of adjusted earnings per diluted share in
the fourth quarter of fiscal 2019 and an increase of 7 percent from
$0.82 of adjusted earnings per
diluted share in the third quarter of fiscal 2020.
In the fourth quarter of fiscal 2020, adjusted earnings exceeded
earnings under U.S. GAAP by $1.19 per
diluted share, reflecting the reversal of the $108.6 million of accelerated stock-based
compensation expense and $6.3 million
of other costs recognized in connection with the proposed
acquisition of Eaton Vance by Morgan Stanley, the reversal of the
$21.8 million impairment loss
recognized on the Company's investment in Hexavest, the reversal of
$2.9 million of net excess tax
benefits related to stock–based compensation awards, the add-back
of $1.8 million of net losses of
consolidated investment entities and other seed capital
investments, and the add-back of $1.7
million of management fees and expenses of consolidated
investment entities. Earnings under U.S. GAAP exceeded adjusted
earnings by $0.07 per diluted share
in the fourth quarter of fiscal 2019, reflecting the reversal of
$8.7 million of net gains of
consolidated investment entities and other seed capital
investments, the add-back of $2.4
million of management fees and expenses of consolidated
investment entities, and the reversal of $1.5 million of net excess tax benefits related
to stock-based compensation awards. In the third quarter of fiscal
2020, adjusted earnings exceeded earnings under U.S. GAAP by
$0.83 per diluted share, reflecting
the reversal of the $100.5 million
impairment loss recognized on the Company's investment in Hexavest,
the reversal of $8.5 million of net
gains of consolidated investment entities and other seed capital
investments, the add-back of $1.6
million of management fees and expenses of consolidated
investment entities, and the reversal of $0.2 million of net excess tax benefits related
to stock–based compensation awards. All adjustments are reflected
net of applicable tax.
In the fiscal year ended October 31,
2020, the Company had consolidated net inflows of
$4.7 billion, representing 1 percent
internal growth in managed assets (consolidated net flows divided
by beginning of period consolidated assets under management). This
compares to net inflows of $23.9
billion and 5 percent internal growth in managed assets in
the fiscal year ended October 31,
2019. Excluding Parametric overlay services, the Company had
net inflows of $8.2 billion and 2
percent internal growth in managed assets in the fiscal year ended
October 31, 2020 and net inflows of
$12.9 billion and 4 percent internal
growth in managed assets in the fiscal year ended October 31, 2019.
In the fourth quarter of fiscal 2020, the Company had
consolidated net inflows of $5.2
billion, representing 4 percent annualized internal growth
in managed assets. This compares to net inflows of $9.8 billion and 8 percent annualized internal
growth in managed assets in the fourth quarter of fiscal 2019 and
net inflows of $2.7 billion and 2
percent annualized internal growth in managed assets in the third
quarter of fiscal 2020. Excluding Parametric overlay services, the
Company had net inflows of $4.8
billion and 5 percent annualized internal growth in managed
assets in the fourth quarter of fiscal 2020, net inflows of
$2.8 billion and 3 percent annualized
internal growth in managed assets in the fourth quarter of fiscal
2019, and net inflows of $1.2 billion
and 1 percent annualized internal growth in managed assets in the
third quarter of fiscal 2020.
The Company's internal management fee revenue growth (management
fees attributable to consolidated inflows less management fees
attributable to consolidated outflows, divided by beginning of
period consolidated management fee revenue) was 2 percent in the
fiscal year ended October 31, 2020
and negligible in the fiscal year ended October 31, 2019. The Company's annualized
internal management fee revenue growth was 5 percent in the fourth
quarter of fiscal 2020, 2 percent in the fourth quarter of fiscal
2019 and 2 percent in the third quarter of fiscal 2020.
Consolidated assets under management were $515.7 billion on October
31, 2020, up 4 percent from $497.4
billion of consolidated managed assets on October 31, 2019 and up 2 percent from
$507.4 billion of consolidated
managed assets on July 31, 2020. The
year-over-year increase in consolidated assets under management
reflects annual net inflows of $4.7
billion, market price appreciation of $11.3 billion and $2.3
billion of new managed assets gained in the acquisition of
the business assets of WaterOak Advisors, LLC (WaterOak) on
October 16, 2020. The sequential
increase in consolidated assets under management in the fourth
quarter of fiscal 2020 reflects quarterly net inflows of
$5.2 billion, market price
appreciation of $0.9 billion and the
$2.3 billion of new managed assets
gained in the WaterOak acquisition.
"Fiscal 2020 was one of the most eventful years in the long
history of Eaton Vance, culminating in the October announcement of
the proposed acquisition of Eaton Vance by Morgan Stanley," said
Thomas E. Faust Jr., Chairman and
Chief Executive Officer. "Even while addressing the personal and
business adversities of the COVID-19 pandemic, the people of Eaton
Vance achieved financial, operating and investment results to
support what I am confident will be one of the most successful
business combinations in asset management. As part of Morgan
Stanley, we look forward to building the world's premier investment
manager."
Average consolidated assets under management were $497.8 billion in the fiscal year ended
October 31, 2020, up 8 percent from
$462.8 billion in the fiscal year
ended October 31, 2019. Average
consolidated assets under management were $516.7 billion in the fourth quarter of fiscal
2020, up 6 percent from $488.9
billion in the fourth quarter of fiscal 2019 and up 7
percent from $484.5 billion in the
third quarter of fiscal 2020.
Attachments 5 and 6 summarize the Company's consolidated assets
under management and net flows by investment mandate and investment
vehicle reporting categories. Attachments 7, 8 and 9 summarize the
Company's ending consolidated assets under management by investment
mandate, investment vehicle and investment affiliate. Attachment 10
shows the Company's average annualized management fee rates by
investment mandate.
As of October 31, 2020, managed
assets of the Company's 49 percent-owned affiliate Hexavest were
$5.8 billion, down 56 percent from
$13.4 billion of managed assets on
October 31, 2019 and down 14 percent
from $6.8 billion of managed assets
on July 31, 2020. Hexavest had net
outflows of $6.2 billion and
$1.6 billion in the fiscal years
ended October 31, 2020 and 2019,
respectively. Hexavest had net outflows of $0.9 billion in the fourth quarter of fiscal
2020, $0.4 billion in the fourth
quarter of fiscal 2019 and $2.7
billion in the third quarter of fiscal 2020. The impairment
losses recognized on the Company's investment in Hexavest in the
third and fourth quarters of fiscal 2020 reflect the net outflows
experienced by Hexavest and the associated decline in Hexavest's
revenue and profits. The Company remains supportive of Hexavest's
leadership and investment approach, and has no plans to change its
ownership position in Hexavest. Attachment 11 summarizes the assets
under management and net flows of Hexavest. Other than Eaton
Vance-sponsored funds for which Hexavest is the adviser or
sub-adviser, the managed assets and flows of Hexavest are not
included in our consolidated totals.
________________
(1) Adjusted financial measures represent non-U.S
GAAP financial measures. See Attachment 2 for
reconciliations to the most directly comparable U.S. GAAP
financial measures and other important disclosures.
Financial Highlights
(in thousands,
except per share figures)
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Three Months
Ended
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Fiscal Year
Ended
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October
31,
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July
31,
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October
31,
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October
31,
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October
31,
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2020
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2020
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2019
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2020
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2019
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U.S. GAAP
Financial Measures:
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Revenue
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$
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451,081
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$
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420,819
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$
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433,740
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$
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1,730,365
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$
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1,683,252
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Expenses
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$
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464,737
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$
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289,598
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$
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298,307
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$
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1,356,125
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$
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1,162,381
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Operating income
(loss)
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$
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(13,656)
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$
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131,221
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$
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135,433
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$
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374,240
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$
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520,871
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Operating margin
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(3.0)%
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31.2%
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31.2%
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21.6%
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30.9%
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Net income (loss)
attributable to
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Eaton
Vance Corp. shareholders
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$
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(35,934)
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$
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(1,593)
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$
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109,206
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$
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138,516
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$
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400,035
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Earnings (loss) per
diluted share
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$
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(0.31)
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$
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(0.01)
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$
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0.96
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$
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1.20
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$
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3.50
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Adjusted Non-U.S.
GAAP Financial Measures:(1)
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Revenue
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$
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452,485
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$
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422,012
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$
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435,646
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$
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1,736,165
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$
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1,688,773
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Expenses
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$
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309,344
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$
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288,584
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$
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297,010
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$
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1,197,286
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$
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1,157,006
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Operating
income
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$
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143,141
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$
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133,428
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$
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138,636
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$
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538,879
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$
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531,767
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Operating margin
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31.6%
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31.6%
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31.8%
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31.0%
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31.5%
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Net income
attributable to
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Eaton
Vance Corp. shareholders
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$
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101,503
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$
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91,830
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$
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101,325
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$
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380,904
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$
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379,845
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Earnings per diluted
share
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$
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0.88
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$
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0.82
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$
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0.89
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$
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3.29
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$
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3.32
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Weighted Average
Shares Outstanding:
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Basic
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110,701
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109,183
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108,690
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109,617
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110,064
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Diluted
|
|
115,878
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111,694
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113,702
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115,735
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114,388
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(1) See Attachment 2 for reconciliations between the
U.S. GAAP and adjusted non-U.S. GAAP financial measures identified
here as well as other important
disclosures.
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Fiscal 2020 vs. Fiscal 2019
In fiscal 2020, revenue increased 3 percent to $1.73 billion from $1.68
billion in fiscal 2019. Management fees were up 3 percent,
as an 8 percent increase in average consolidated assets under
management more than offset a 4 percent decrease in the Company's
consolidated average management fee rate. Performance fees were
$5.1 million in fiscal 2020,
versus $1.7 million in fiscal
2019. Collectively, distribution and service fee revenues were
substantially unchanged from fiscal 2019.
Operating expenses increased 17 percent to $1.4 billion in fiscal 2020 from $1.2 billion in fiscal 2019, reflecting increases
in compensation, service fee expense, amortization of deferred
sales commissions, fund-related expenses and other operating
expenses, partially offset by a decrease in distribution expense.
The increase in compensation primarily reflects $146.0 million of accelerated stock-based
compensation expense recognized in the fourth quarter of fiscal
2020 in connection with the proposed acquisition of Eaton Vance by
Morgan Stanley. The increase in compensation further reflects
higher salaries and benefit expenses associated with increases in
average headcount year-over-year and higher operating income-based
bonus accruals, partially offset by lower severance expenses and
lower sales-based incentive compensation. The increase in service
fee expense reflects higher private fund and Class A service fee
payments, partially offset by lower Class C service fee payments.
The increase in amortization of deferred sales commissions reflects
higher private fund commission amortization, partially offset by
lower Class C commission amortization. The increase in fund-related
expenses reflects higher sub-advisory fees paid, partially offset
by a reduction in fund expenses borne by the Company. Other
operating expenses increased 11 percent, primarily reflecting an
increase in information technology spending and higher professional
service expenses driven by increases in legal and consulting costs
associated with the proposed acquisition of Eaton Vance by Morgan
Stanley, partially offset by lower travel expenses and a decrease
in amortization expense related to certain intangible assets that
were fully amortized during the first quarter of fiscal 2020. The
decline in distribution expense reflects lower Class C distribution
fee payments and promotion costs, partially offset by an increase
in intermediary marketing support payments.
Operating income decreased 28 percent to $374.2 million in fiscal 2020 from $520.9 million in fiscal 2019. The Company's
operating margin decreased to 21.6 percent in fiscal 2020 from 30.9
percent in fiscal 2019. As shown in Attachment 2, the Company's
operating income on an adjusted basis was up 1 percent
year-over-year, and the Company's adjusted operating margin
decreased to 31.0 percent in fiscal 2020 from 31.5 percent in
fiscal 2019.
Non-operating expense totaled $39.8
million in fiscal 2020 versus $38.2
million of non-operating income in fiscal 2019. The
year-over-year change primarily reflects a $47.8 million decrease in net gains and other
investment income of consolidated sponsored funds and the Company's
investments in other sponsored strategies, and a $30.0 million unfavorable change in net income
(expense) of consolidated CLO entities.
The Company's effective tax rate, calculated as a percentage of
income before income taxes and equity in net income of affiliates,
was 25.1 percent in fiscal 2020 and 24.2 percent in fiscal 2019.
The Company's effective tax rate is discussed in greater detail
under "Taxation" below.
Equity in net income (loss) of affiliates was $(117.2) million in fiscal 2020 and $9.1 million in fiscal 2019. Equity in net income
(loss) of affiliates in fiscal 2020 includes the $122.2 million of impairment losses recognized on
the Company's investment in Hexavest as discussed above. In both
fiscal 2020 and fiscal 2019, substantially all of the Company's
equity in net income of affiliates related to the Company's
investment in Hexavest.
As detailed in Attachment 3, net income (loss) attributable to
non-controlling and other beneficial interests was $(5.2) million in fiscal 2020 and $32.8 million in fiscal 2019. The year-over-year
change reflects a decrease in income earned by consolidated
sponsored funds and a decrease in net income allocated to
non-controlling interest holders of the Company's majority-owned
subsidiaries due to the accelerated repurchase of certain profit
and capital interests in Parametric entities held by current and
former employees, which settled at the end of the fourth quarter of
fiscal 2019.
The Company's weighted average basic shares outstanding were
109.6 million in fiscal 2020 and 110.1 million in fiscal 2019,
primarily reflecting share repurchases in excess of new shares
issued upon the vesting of restricted stock awards and the exercise
of employee stock options. On a diluted basis, the Company's
weighted average shares outstanding were 115.7 million in fiscal
2020 and 114.4 million in fiscal 2019, an increase of 1 percent.
The increase in weighted average diluted shares outstanding
reflects an increase in the dilutive effect of restricted stock
awards due to the accelerated vesting of restricted stock awards in
connection with the proposed acquisition of Eaton Vance by Morgan
Stanley.
Fourth Quarter Fiscal 2020 vs. Fourth Quarter Fiscal
2019
In the fourth quarter of fiscal 2020, revenue increased 4
percent to $451.1 million from
$433.7 million in the fourth quarter
of fiscal 2019. Management fees were up 5 percent, as a 6 percent
increase in average consolidated assets under management more than
offset a 1 percent decrease in the Company's consolidated average
annualized management fee rate. Performance fees were $1.5 million in the fourth quarter of fiscal
2020, versus $0.1 million in the
fourth quarter of fiscal 2019. Distribution and service fee
revenues in the fourth quarter of fiscal 2020 were collectively
down 1 percent from the fourth quarter of fiscal 2019, reflecting
lower average managed assets in fund share classes that are subject
to these fees.
Operating expenses increased 56 percent to $464.7 million in the fourth quarter of fiscal
2020 from $298.3 million in the
fourth quarter of fiscal 2019, reflecting increases in
compensation, service fee expense, amortization of deferred sales
commissions and other operating expenses, partially offset by
decreases in distribution expense and fund-related expenses. The
increase in compensation primarily reflects $146.0 million of accelerated stock-based
compensation expense recognized in the fourth quarter of fiscal
2020 in connection with the proposed acquisition of Eaton Vance by
Morgan Stanley. The increase in compensation further reflects
higher operating income-based bonus accruals and higher salaries
and benefit expenses associated with increases in headcount,
partially offset by lower severance expenses and lower sales-based
incentive compensation. The increase in service fee expense
reflects higher private fund service fee payments, partially offset
by lower Class C service fee payments. The increase in amortization
of deferred sales commissions reflects higher private fund
commission amortization. Other operating expenses increased 21
percent, primarily reflecting higher professional service expenses
driven by increases in legal and consulting costs associated with
the proposed acquisition of Eaton Vance by Morgan Stanley and an
increase in information technology spending, partially offset by
lower travel expenses. The decline in distribution expense reflects
lower Class C distribution fee payments and a decrease in up-front
sales commission expense, partially offset by an increase in
promotion costs and higher intermediary marketing support payments.
The decrease in fund-related expenses reflects a reduction in fund
expenses borne by the Company, partially offset by higher
sub-advisory fees paid.
Operating income (loss) decreased to $(13.7) million in the fourth quarter of fiscal
2020 from $135.4 million in the
fourth quarter of fiscal 2019, primarily reflecting the
$146.0 million of stock-based
compensation expense and $8.5 million
of other costs recognized in the fourth quarter of fiscal 2020 in
connection with the proposed acquisition of Eaton Vance by Morgan
Stanley as described above. As shown in Attachment 2, the Company's
operating income on an adjusted basis increased 3 percent from the
fourth quarter of fiscal 2019, and the Company's adjusted operating
margin decreased to 31.6 percent in the fourth quarter of fiscal
2020 from 31.8 percent in the fourth quarter of fiscal 2019.
Non-operating expense totaled $7.1
million in the fourth quarter of fiscal 2020 versus
$15.6 million of non-operating income
in the fourth quarter of fiscal 2019. The year-over-year change
primarily reflects an $11.2 million
decrease in net gains and other investment income of consolidated
sponsored funds and the Company's investments in other sponsored
strategies, and an $11.6 million
unfavorable change in net income (expense) of consolidated CLO
entities.
The Company's effective tax rate, calculated as a percentage of
income (loss) before income taxes and equity in net income of
affiliates, was 36.6 percent in the fourth quarter of fiscal 2020
and 22.7 percent in the fourth quarter of fiscal 2019. The
Company's effective tax rate is discussed in greater detail under
"Taxation" below.
Equity in net income (loss) of affiliates was $(20.8) million and $2.2
million in the fourth quarters of fiscal 2020 and 2019,
respectively. Equity in net income (loss) of affiliates in the
fourth quarter of fiscal 2020 included the $21.8 million impairment loss recognized on the
Company's investment in Hexavest as discussed above. In both the
fourth quarter of fiscal 2020 and the fourth quarter of fiscal
2019, substantially all of the Company's equity in net income of
affiliates related to the Company's investment in Hexavest.
As detailed in Attachment 3, net income attributable to
non-controlling and other beneficial interests was $2.0 million in the fourth quarter of fiscal 2020
and $9.7 million in the fourth
quarter of fiscal 2019. The year-over-year change reflects a
decrease in income earned by consolidated sponsored funds and a
decrease in net income allocated to non-controlling interest
holders of the Company's majority-owned subsidiaries due to the
accelerated repurchase of certain profit and capital interests in
Parametric entities held by current and former employees, which
settled at the end of the fourth quarter of fiscal 2019.
The Company's weighted average basic shares outstanding were
110.7 million in the fourth quarter of fiscal 2020 and 108.7
million in the fourth quarter of fiscal 2019, an increase of 2
percent. The year-over-year increase reflects new shares issued
upon the vesting of restricted stock awards and the exercise of
employee stock options in excess of share repurchases. On a diluted
basis, the Company's weighted average shares outstanding were 115.9
million in the fourth quarter of fiscal 2020 and 113.7 million in
the fourth quarter of fiscal 2019, an increase of 2 percent. The
change in weighted average diluted shares outstanding further
reflects an increase in the dilutive effect of restricted stock
awards due to the accelerated vesting of restricted stock awards in
connection with the proposed acquisition of Eaton Vance by Morgan
Stanley.
Fourth Quarter Fiscal 2020 vs. Third Quarter Fiscal
2020
In the fourth quarter of fiscal 2020, revenue increased 7
percent to $451.1 million from
$420.8 million in the third quarter
of fiscal 2020. Management fees were up 7 percent, primarily
reflecting a 7 percent increase in average consolidated assets
under management and a 1 percent increase in the Company's
consolidated average annualized management fee rate. Performance
fees were $1.5 million in the fourth
quarter of fiscal 2020, versus $0.9
million in the third quarter of fiscal 2020. Distribution
and service fee revenues in the fourth quarter of fiscal 2020 were
collectively up 5 percent from the third quarter of fiscal 2020,
reflecting higher average managed assets in fund share classes that
are subject to these fees.
Operating expenses increased 60 percent to $464.7 million in the fourth quarter of fiscal
2020 from $289.6 million in the third
quarter of fiscal 2020, primarily reflecting increases in
compensation, distribution expense, service fee expense,
fund-related expenses and other operating expenses. The increase in
compensation primary reflects $146.0
million of accelerated stock-based compensation expense
recognized in the fourth quarter of fiscal 2020 in connection with
the proposed acquisition of Eaton Vance by Morgan Stanley. The
increase in compensation further reflects higher operating
income-based bonus accruals, higher salary and benefit
expenses associated with increases in headcount, and higher
sales-based incentive compensation. The increase in distribution
expense reflects higher promotion costs, an increase in
intermediary marketing support payments and an increase in up-front
sales commission expense, partially offset by lower Class C
distribution fee payments and a decrease in finder's fees. The
increase in service fee expense reflects higher private fund and
Class A service fee payments. The increase in fund-related expenses
reflects higher sub-advisory fees paid and an increase in fund
expenses borne by the Company. Other operating expenses increased
16 percent, primarily reflecting higher professional service
expenses driven by increases in legal and consulting costs
associated with the proposed acquisition of Eaton Vance by Morgan
Stanley and an increase in information technology spending,
partially offset by a decrease in other corporate expenses.
Operating income (loss) decreased to $(13.7) million in the fourth quarter of fiscal
2020 from $131.2 million in the third
quarter of fiscal 2020, primarily reflecting the $146.0 million of stock-based compensation
expense and $8.5 million of other
costs recognized in the fourth quarter of fiscal 2020 in connection
with the proposed acquisition of Eaton Vance by Morgan Stanley as
described above. As shown in Attachment 2, the Company's operating
income on an adjusted basis increased 7 percent from the third
quarter of fiscal 2020. The Company's adjusted operating margin was
31.6 percent in both the fourth quarter of fiscal 2020 and the
third quarter of fiscal 2020.
Non-operating expense totaled $7.1
million in the fourth quarter of fiscal 2020 versus
$32.3 million of non-operating income
in the third quarter of fiscal 2020. The sequential change reflects
a $29.7 million decrease in net gains
and other investment income of consolidated sponsored funds and the
Company's investments in other sponsored strategies, and a
$9.8 million unfavorable change in
net income (expense) of consolidated CLO entities.
The Company's effective tax rate, calculated as a percentage of
income (loss) before income taxes and equity in net income of
affiliates, was 36.6 percent in the fourth quarter of fiscal 2020
and 22.6 percent in the third quarter of fiscal 2020. The Company's
effective tax rate is discussed in greater detail under "Taxation"
below.
Equity in net loss of affiliates was $20.8 million in the fourth quarter of fiscal
2020 and $100.2 million in the third
quarter of fiscal 2020. Equity in net loss of affiliates in the
fourth and third quarters of fiscal 2020 included impairment losses
of $21.8 million and $100.5 million, respectively, recognized on the
Company's investment in Hexavest as discussed above. In both the
fourth quarter of fiscal 2020 and the third quarter of fiscal 2020,
substantially all of the Company's equity in net income of
affiliates related to the Company's investment in Hexavest.
As detailed in Attachment 3, net income attributable to
non-controlling and other beneficial interests was $2.0 million in the fourth quarter of fiscal 2020
and $28.0 million in the third
quarter of fiscal 2020. The sequential change primarily reflects a
decrease in income earned by consolidated sponsored funds.
The Company's weighted average basic shares outstanding were
110.7 million in the fourth quarter of fiscal 2020 and 109.2
million in the third quarter of fiscal 2020, an increase of 1
percent. The increase reflects new shares issued upon the vesting
of restricted stock awards and the exercise of employee stock
options in excess of share repurchases. On a diluted basis, the
Company's weighted average shares outstanding were 115.9 million in
the fourth quarter of fiscal 2020 and 111.7 million in the third
quarter of fiscal 2020, an increase of 4 percent. The change in
weighted average diluted shares outstanding further reflects an
increase in the dilutive effect of in-the-money options due to
higher market prices of the Company's shares and an increase in the
dilutive effect of restricted stock awards due to the accelerated
vesting of restricted stock awards in connection with the proposed
acquisition of Eaton Vance by Morgan Stanley.
Taxation
The following table reconciles the U.S. statutory federal income
tax rate to the Company's effective income tax rate:
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
October
31,
|
July
31,
|
October
31,
|
|
October
31,
|
October
31,
|
|
|
2020
|
2020
|
2019
|
|
2020
|
2019
|
Statutory U.S.
federal income tax rate
|
21.0
|
%
|
21.0
|
%
|
21.0
|
%
|
|
21.0
|
%
|
21.0
|
%
|
State income tax, net
of federal income
|
|
|
|
|
|
|
|
|
|
|
|
tax
benefits
|
5.8
|
|
4.0
|
|
4.5
|
|
|
5.0
|
|
4.7
|
|
Net income (loss)
attributable to non-
|
|
|
|
|
|
|
|
|
|
|
|
controlling and other beneficial interests
|
2.0
|
|
(3.6)
|
|
(1.7)
|
|
|
0.3
|
|
(1.2)
|
|
Other
items
|
(6.0)
|
|
1.3
|
|
(0.1)
|
|
|
1.5
|
|
0.7
|
|
Net excess tax
benefits from stock-based
|
|
|
|
|
|
|
|
|
|
|
|
compensation plans
|
13.8
|
|
(0.1)
|
|
(1.0)
|
|
|
(2.7)
|
|
(1.0)
|
|
Effective income tax
rate
|
36.6
|
%
|
22.6
|
%
|
22.7
|
%
|
|
25.1
|
%
|
24.2
|
%
|
The net loss experienced by the Company in the fourth quarter of
fiscal 2020 resulted in a tax benefit being recognized during the
quarter.
The Company's income tax provision was reduced by net excess tax
benefits related to stock-based compensation awards totaling
$9.0 million in fiscal 2020 and
$5.4 million in fiscal 2019. These
net excess tax benefits totaled $2.9
million in the fourth quarter of fiscal 2020, $1.5 million in the fourth quarter of fiscal 2019
and $0.2 million in the third quarter
of fiscal 2020. The Company's income tax provision is also impacted
by other items, which include non-deductible executive
compensation, prior period adjustments, primarily related to the
filing of tax returns, and other permanent book to tax
differences. The tax rate impact of other items indicated for
the fourth quarter of fiscal 2020 primarily reflects the
significant decrease in pre-tax income recognized in the
quarter.
As shown in Attachment 2, the Company's calculations of adjusted
net income and adjusted earnings per diluted share remove the
accelerated stock-based compensation expense and other costs
related to the proposed acquisition of Eaton Vance by Morgan
Stanley that was announced in the fourth quarter of fiscal 2020,
remove the impairment losses recognized in the third and fourth
quarters of fiscal 2020 on the Company's investment in 49
percent-owned affiliate Hexavest, exclude gains (losses) and other
investment income (expense) of consolidated investment entities and
other seed capital investments, add back the management fees and
expenses of consolidated investment entities, and exclude the tax
impact of stock-based compensation shortfalls or windfalls. On this
basis, the Company's adjusted effective tax rate was 26.5 percent
and 26.1 percent for fiscal 2020 and fiscal 2019, respectively, and
was 26.2 percent in the fourth quarter of fiscal 2020, 24.8 percent
in the fourth quarter of fiscal 2019 and 27.1 percent in the third
quarter of fiscal 2020.
Balance Sheet Information
As of October 31, 2020, the
Company held cash and cash equivalents of $799.4 million and its investments included
$290.2 million of short-term debt
securities with maturities between 90 days and one year. There were
no outstanding borrowings under the Company's $300 million credit facility at such date. During
fiscal 2020, the Company used $171.5
million to repurchase and retire approximately 4.2 million
shares of its Non-Voting Common Stock under its repurchase
authorizations prior to suspending share repurchases during the
second fiscal quarter.
Proposed Acquisition of Eaton Vance by Morgan Stanley
As described above, Eaton Vance and Morgan Stanley announced on
October 8, 2020 that they have
entered into a definitive agreement for Morgan Stanley to acquire
Eaton Vance. Under the terms of the merger agreement, Eaton Vance
shareholders will receive $28.25 per
share in cash and 0.5833 shares of Morgan Stanley common stock per
share of Eaton Vance common stock held. The merger agreement
contains an election procedure whereby each Eaton Vance shareholder
may elect to receive the merger consideration all in cash or all in
stock, subject to proration and adjustment. It is anticipated that
the transaction proceeds received in Morgan Stanley stock will not
be taxable to Eaton Vance shareholders.
The merger agreement also provides for Eaton Vance shareholders
to receive, prior to the close of the transaction, a one-time
special dividend of $4.25 per share
of Eaton Vance common stock held. As announced on November 23, 2020, the Eaton Vance Board of
Directors has declared the $4.25 per
share special dividend as payable on December 18, 2020 to shareholders of record on
December 4, 2020.
As previously announced, the proposed transaction is subject to
customary closing conditions and expected to close in the second
quarter of 2021. The Company's management believes the proposed
transaction is on track to close as
scheduled.
Supplementary Materials
In lieu of a conference call, the Company has published certain
supplementary materials that can be accessed via Eaton Vance's
website, eatonvance.com.
About Eaton Vance Corp.
Eaton Vance Corp. (NYSE: EV) provides advanced investment
strategies and wealth management solutions to forward-thinking
investors around the world. Through principal investment affiliates
Eaton Vance Management, Parametric, Atlanta Capital, Calvert and
Hexavest, the Company offers a diversity of investment approaches,
encompassing bottom-up and top-down fundamental active management,
responsible investing, systematic investing and customized
implementation of client-specified portfolio exposures. As of
October 31, 2020, Eaton Vance had
consolidated assets under management of $515.7 billion. Exemplary service, timely
innovation and attractive returns across market cycles have been
hallmarks of Eaton Vance since 1924. For more information, visit
eatonvance.com.
Forward-Looking Statements
This news release may contain statements that are not historical
facts, referred to as "forward-looking statements." The Company's
actual future results may differ significantly from those stated in
any forward-looking statements, depending on factors such as
changes in securities or financial markets or general economic
conditions, the scope and duration of the COVID-19 pandemic and its
impact on the global economy or capital markets, the completion of
the proposed transaction with Morgan Stanley and the anticipated
terms and timing, including obtaining required regulatory
approvals, anticipated tax treatment, unforeseen liabilities,
future capital expenditures, revenues, expenses, earnings,
synergies, economic performance, indebtedness, financial condition,
losses, future prospects, business and management strategies for
the management, expansion and growth of the combined company's
operations and other conditions to the completion of the
acquisition, client sales and redemption activity, the continuation
of investment advisory, administration, distribution and service
contracts, and other risks discussed in the Company's filings with
the Securities and Exchange Commission.
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
1
|
Consolidated
Statements of Income
|
(in thousands,
except per share figures)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2020
|
Q4
2020
|
|
|
|
|
|
|
|
|
|
October
31,
|
July
31,
|
October
31,
|
vs.
|
vs.
|
|
October
31,
|
October
31,
|
%
|
|
|
2020
|
2020
|
2019
|
Q3
2020
|
Q4
2019
|
|
2020
|
2019
|
Change
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management
fees
|
$
|
396,268
|
$
|
369,198
|
$
|
378,062
|
7
|
%
|
5
|
%
|
|
$
|
1,514,388
|
$
|
1,463,943
|
3
|
%
|
Distribution and
underwriter fees
|
|
18,215
|
|
18,141
|
|
21,187
|
-
|
|
(14)
|
|
|
|
77,056
|
|
85,612
|
(10)
|
|
Service
fees
|
|
34,906
|
|
32,322
|
|
32,272
|
8
|
|
8
|
|
|
|
131,724
|
|
123,073
|
7
|
|
Other
revenue
|
|
1,692
|
|
1,158
|
|
2,219
|
46
|
|
(24)
|
|
|
|
7,197
|
|
10,624
|
(32)
|
|
|
Total
revenue
|
|
451,081
|
|
420,819
|
|
433,740
|
7
|
|
4
|
|
|
|
1,730,365
|
|
1,683,252
|
3
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
related costs
|
|
315,847
|
|
156,780
|
|
160,441
|
101
|
|
97
|
|
|
|
793,681
|
|
626,513
|
27
|
|
Distribution
expense
|
|
35,436
|
|
32,198
|
|
38,731
|
10
|
|
(9)
|
|
|
|
141,170
|
|
150,239
|
(6)
|
|
Service fee
expense
|
|
30,542
|
|
28,266
|
|
28,287
|
8
|
|
8
|
|
|
|
115,211
|
|
107,762
|
7
|
|
Amortization of
deferred sales commissions
|
|
6,400
|
|
6,329
|
|
5,831
|
1
|
|
10
|
|
|
|
24,986
|
|
22,593
|
11
|
|
Fund-related
expenses
|
|
10,932
|
|
9,545
|
|
11,037
|
15
|
|
(1)
|
|
|
|
42,441
|
|
40,357
|
5
|
|
Other
expenses
|
|
65,580
|
|
56,480
|
|
53,980
|
16
|
|
21
|
|
|
|
238,636
|
|
214,917
|
11
|
|
|
Total
expenses
|
|
464,737
|
|
289,598
|
|
298,307
|
60
|
|
56
|
|
|
|
1,356,125
|
|
1,162,381
|
17
|
|
Operating income
(loss)
|
|
(13,656)
|
|
131,221
|
|
135,433
|
NM
|
|
NM
|
|
|
|
374,240
|
|
520,871
|
(28)
|
|
Non-operating
income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains and other
investment income, net
|
|
3,994
|
|
33,671
|
|
15,155
|
(88)
|
|
(74)
|
|
|
|
3,243
|
|
51,040
|
(94)
|
|
Interest
expense
|
|
(5,800)
|
|
(5,888)
|
|
(5,888)
|
(1)
|
|
(1)
|
|
|
|
(23,940)
|
|
(23,795)
|
1
|
|
Other income
(expense) of consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
collateralized loan
obligation (CLO) entities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains and
other investment income, net
|
|
10,961
|
|
14,440
|
|
24,777
|
(24)
|
|
(56)
|
|
|
|
36,123
|
|
70,272
|
(49)
|
|
|
Interest and
other expense
|
|
(16,246)
|
|
(9,912)
|
|
(18,445)
|
64
|
|
(12)
|
|
|
|
(55,201)
|
|
(59,350)
|
(7)
|
|
|
Total non-operating
income (expense)
|
|
(7,091)
|
|
32,311
|
|
15,599
|
NM
|
|
NM
|
|
|
|
(39,775)
|
|
38,167
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes and equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
net income (loss) of affiliates
|
|
(20,747)
|
|
163,532
|
|
151,032
|
NM
|
|
NM
|
|
|
|
334,465
|
|
559,038
|
(40)
|
|
Income tax (expense)
benefit
|
|
7,594
|
|
(36,899)
|
|
(34,254)
|
NM
|
|
NM
|
|
|
|
(83,900)
|
|
(135,252)
|
(38)
|
|
Equity in net income
(loss) of affiliates, net of tax
|
|
(20,793)
|
|
(100,244)
|
|
2,172
|
(79)
|
|
NM
|
|
|
|
(117,231)
|
|
9,090
|
NM
|
|
Net income
(loss)
|
|
(33,946)
|
|
26,389
|
|
118,950
|
NM
|
|
NM
|
|
|
|
133,334
|
|
432,876
|
(69)
|
|
Net (income) loss
attributable to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
other beneficial interests
|
|
(1,988)
|
|
(27,982)
|
|
(9,744)
|
(93)
|
|
(80)
|
|
|
|
5,182
|
|
(32,841)
|
NM
|
|
Net income (loss)
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton
Vance Corp. shareholders
|
$
|
(35,934)
|
$
|
(1,593)
|
$
|
109,206
|
NM
|
|
NM
|
|
|
$
|
138,516
|
$
|
400,035
|
(65)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.32)
|
$
|
(0.01)
|
$
|
1.00
|
NM
|
|
NM
|
|
|
$
|
1.26
|
$
|
3.63
|
(65)
|
|
Diluted
|
$
|
(0.31)
|
$
|
(0.01)
|
$
|
0.96
|
NM
|
|
NM
|
|
|
$
|
1.20
|
$
|
3.50
|
(66)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
110,701
|
|
109,183
|
|
108,690
|
1
|
|
2
|
|
|
|
109,617
|
|
110,064
|
-
|
|
Diluted
|
|
115,878
|
|
111,694
|
|
113,702
|
4
|
|
2
|
|
|
|
115,735
|
|
114,388
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.375
|
$
|
0.375
|
$
|
0.375
|
-
|
|
-
|
|
|
$
|
1.500
|
$
|
1.425
|
5
|
|
Attachment 2
Non-U.S. GAAP Information and Reconciliations
Management believes that certain non-U.S. GAAP financial
measures, specifically, adjusted operating income, adjusted net
income attributable to Eaton Vance Corp. shareholders and adjusted
earnings per diluted share, while not a substitute for U.S. GAAP
financial measures, may be effective indicators of the Company's
performance over time. Non-U.S. GAAP financial measures should not
be construed to be superior to U.S. GAAP measures. In calculating
these non-U.S. GAAP financial measures, operating income, net
income attributable to Eaton Vance Corp. shareholders and earnings
per diluted share are adjusted to exclude items management deems
non-operating or non-recurring in nature, or otherwise outside the
ordinary course of business. These adjustments may include, when
applicable, the add back of closed-end fund structuring fees, costs
associated with debt repayments and tax settlements, the tax impact
of stock-based compensation shortfalls or windfalls, impairment
charges, acquisition-related items and non-recurring charges for
the effect of tax law changes. The adjusted measures also exclude
the impact of consolidated investment entities and other seed
capital investments. Management and our Board of Directors, as well
as certain of our outside investors, consider the adjusted numbers
a measure of the Company's underlying operating performance.
Management believes adjusted net income attributable to Eaton Vance
Corp. shareholders and adjusted earnings per diluted share are
important indicators of our operations because they exclude items
that may not be indicative of, or are unrelated to, our core
operating results, and may provide a useful baseline for analyzing
trends in our underlying business.
Effective in the second quarter of fiscal 2020, the Company's
calculation of non-U.S. GAAP financial measures excludes the impact
of consolidated investment entities and other seed capital
investments. Adjustments to U.S. GAAP operating income include the
add-back of management fee revenue received from consolidated
investment entities that are eliminated in consolidation and the
non-management expenses of consolidated sponsored funds recognized
in consolidation. Adjustments to U.S. GAAP net income attributable
to Eaton Vance Corp. shareholders include the after-tax impact of
these adjustments to operating income and the elimination of gains
(losses) and other investment income (expense) of consolidated
investment entities and other seed capital investments included in
non-operating income (expense), as determined net of tax and
non-controlling and other beneficial interests. All prior period
non-U.S. GAAP financial measures have been updated to reflect this
change.
Reconciliation of
operating income (loss) to adjusted operating
income:
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2020
|
Q4
2020
|
|
|
|
|
|
|
|
|
|
October
31,
|
July
31,
|
October
31,
|
|
vs.
|
vs.
|
|
October
31,
|
October
31,
|
|
%
|
|
2020
|
2020
|
2019
|
|
Q3
2020
|
Q4
2019
|
|
2020
|
2019
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
451,081
|
$
|
420,819
|
$
|
433,740
|
|
7
|
%
|
4
|
%
|
|
$
|
1,730,365
|
$
|
1,683,252
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees of
consolidated sponsored
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
funds and
consolidated CLO entities(1)
|
|
1,404
|
|
1,193
|
|
1,906
|
|
18
|
|
(26)
|
|
|
|
5,800
|
|
5,521
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted total
revenue
|
$
|
452,485
|
$
|
422,012
|
$
|
435,646
|
|
7
|
|
4
|
|
|
$
|
1,736,165
|
$
|
1,688,773
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
expenses
|
$
|
464,737
|
$
|
289,598
|
$
|
298,307
|
|
60
|
%
|
56
|
%
|
|
$
|
1,356,125
|
$
|
1,162,381
|
|
17
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-management
expenses of consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sponsored
funds(2)
|
|
(942)
|
|
(1,014)
|
|
(1,297)
|
|
(7)
|
|
(27)
|
|
|
|
(4,388)
|
|
(5,375)
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated
stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related to the
proposed acquisition of Eaton Vance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
by Morgan
Stanley(3)
|
|
(145,993)
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
(145,993)
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs related
to the proposed acquisition of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance by Morgan
Stanley(4)
|
|
(8,458)
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
(8,458)
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted total
expenses
|
$
|
309,344
|
$
|
288,584
|
$
|
297,010
|
|
7
|
|
4
|
|
|
$
|
1,197,286
|
$
|
1,157,006
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
(13,656)
|
$
|
131,221
|
$
|
135,433
|
|
NM
|
%
|
NM
|
%
|
|
$
|
374,240
|
$
|
520,871
|
|
(28)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees of
consolidated sponsored
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
funds and
consolidated CLO entities(1)
|
|
1,404
|
|
1,193
|
|
1,906
|
|
18
|
|
(26)
|
|
|
|
5,800
|
|
5,521
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-management
expenses of consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sponsored
funds(2)
|
|
942
|
|
1,014
|
|
1,297
|
|
(7)
|
|
(27)
|
|
|
|
4,388
|
|
5,375
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated
stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related to the
proposed acquisition of Eaton Vance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
by Morgan
Stanley(3)
|
|
145,993
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
145,993
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs related
to the proposed acquisition of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance by Morgan
Stanley(4)
|
|
8,458
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
8,458
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
$
|
143,141
|
$
|
133,428
|
$
|
138,636
|
|
7
|
|
3
|
|
|
$
|
538,879
|
$
|
531,767
|
|
1
|
|
Operating
margin
|
|
(3.0)
|
%
|
31.2
|
%
|
31.2
|
%
|
NM
|
|
NM
|
|
|
|
21.6
|
%
|
30.9
|
%
|
(30)
|
|
Adjusted operating
margin
|
|
31.6
|
%
|
31.6
|
%
|
31.8
|
%
|
-
|
|
(1)
|
|
|
|
31.0
|
%
|
31.5
|
%
|
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment 2
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
income (loss) before income taxes and equity in net income (loss)
of affiliates to adjusted income before income taxes and equity in
net income
(loss) of
affiliates and income tax expense (benefit) to adjusted income tax
expense:
|
(in thousands,
except as noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2020
|
Q4
2020
|
|
|
|
|
|
|
|
|
|
October
31,
|
July
31,
|
October
31,
|
|
vs.
|
vs.
|
|
October
31,
|
October
31,
|
|
%
|
|
2020
|
2020
|
2019
|
|
Q3
2020
|
Q4
2019
|
|
2020
|
2019
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes and equity in net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income (loss) of
affiliates
|
$
|
(20,747)
|
$
|
163,532
|
$
|
151,032
|
|
NM
|
%
|
NM
|
%
|
|
$
|
334,465
|
$
|
559,038
|
|
(40)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees of
consolidated sponsored
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
funds and
consolidated CLO entities, pre-tax(1)
|
|
1,404
|
|
1,193
|
|
1,906
|
|
18
|
|
(26)
|
|
|
|
5,800
|
|
5,521
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-management
expenses of consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sponsored funds,
pre-tax(2)
|
|
942
|
|
1,014
|
|
1,297
|
|
(7)
|
|
(27)
|
|
|
|
4,388
|
|
5,375
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated
stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related to the
proposed acquisition of Eaton Vance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
by Morgan Stanley,
pre-tax(3)
|
|
145,993
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
145,993
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs related
to the proposed acquisition of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance by Morgan
Stanley, pre-tax(4)
|
|
8,458
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
8,458
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (gains) losses
and other investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related to
consolidated sponsored funds and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other seed capital
investments, pre-tax(5)
|
|
(3,861)
|
|
(33,419)
|
|
(12,161)
|
|
(88)
|
|
(68)
|
|
|
|
396
|
|
(39,925)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income)
expense of consolidated CLO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
entities,
pre-tax(6)
|
|
5,285
|
|
(4,528)
|
|
(6,332)
|
|
NM
|
|
NM
|
|
|
|
19,078
|
|
(10,921)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income
before income taxes and equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in net income
(loss) of affiliates
|
$
|
137,474
|
$
|
127,792
|
$
|
135,742
|
|
8
|
|
1
|
|
|
$
|
518,578
|
$
|
519,088
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
$
|
(7,594)
|
$
|
36,899
|
$
|
34,254
|
|
NM
|
%
|
NM
|
%
|
|
$
|
83,900
|
$
|
135,252
|
|
(38)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees of
consolidated sponsored
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
funds and
consolidated CLO entities(1)
|
|
359
|
|
308
|
|
489
|
|
17
|
|
(27)
|
|
|
|
1,496
|
|
1,414
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-management
expenses of consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sponsored
funds(2)
|
|
241
|
|
262
|
|
333
|
|
(8)
|
|
(28)
|
|
|
|
1,132
|
|
1,375
|
|
(18)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated
stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related to the
proposed acquisition of Eaton Vance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
by Morgan
Stanley(3)
|
|
37,345
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
37,345
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs related
to the proposed acquisition of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance by Morgan
Stanley(4)
|
|
2,164
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
2,164
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains and other
investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related to
consolidated sponsored funds and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other seed capital
investments(5)
|
|
(722)
|
|
(1,789)
|
|
(1,387)
|
|
(60)
|
|
(48)
|
|
|
|
(2,620)
|
|
(5,084)
|
|
(48)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income)
expense of consolidated CLO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
entities(6)
|
|
1,352
|
|
(1,170)
|
|
(1,626)
|
|
NM
|
|
NM
|
|
|
|
4,918
|
|
(2,786)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net excess tax
benefits from stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation
plans
|
|
2,872
|
|
176
|
|
1,541
|
|
NM
|
|
86
|
|
|
|
8,968
|
|
5,404
|
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income
tax expense
|
$
|
36,017
|
$
|
34,686
|
$
|
33,604
|
|
4
|
|
7
|
|
|
$
|
137,303
|
$
|
135,575
|
|
1
|
|
Effective income
tax rate
|
|
36.6
|
%
|
22.6
|
%
|
22.7
|
%
|
62
|
|
61
|
|
|
|
25.1
|
%
|
24.2
|
%
|
4
|
|
Adjusted effective
income tax rate
|
|
26.2
|
%
|
27.1
|
%
|
24.8
|
%
|
(3)
|
|
6
|
|
|
|
26.5
|
%
|
26.1
|
%
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment 2
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net income (loss) attributable to Eaton Vance Corp. shareholders to
adjusted net income attributable to Eaton Vance Corp. shareholders
and earnings
(loss) per diluted share to adjusted earnings per diluted
share:
|
(in thousands,
except per share figures)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2020
|
Q4
2020
|
|
|
|
|
|
|
|
|
|
October
31,
|
July
31,
|
October
31,
|
|
vs.
|
vs.
|
|
October
31,
|
October
31,
|
|
%
|
|
2020
|
2020
|
2019
|
|
Q3
2020
|
Q4
2019
|
|
2020
|
2019
|
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Eaton Vance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corp.
shareholders
|
$
|
(35,934)
|
$
|
(1,593)
|
$
|
109,206
|
|
NM
|
%
|
NM
|
%
|
|
$
|
138,516
|
$
|
400,035
|
|
(65)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees of
consolidated sponsored
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
funds and
consolidated CLO entities, net of
tax(1)
|
|
1,045
|
|
885
|
|
1,417
|
|
18
|
|
(26)
|
|
|
|
4,304
|
|
4,107
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-management
expenses of consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sponsored funds, net
of tax(2)
|
|
701
|
|
752
|
|
964
|
|
(7)
|
|
(27)
|
|
|
|
3,256
|
|
4,000
|
|
(19)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated
stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related to the
proposed acquisition of Eaton Vance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
by Morgan Stanley,
net of tax(3)
|
|
108,648
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
108,648
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs related
to the proposed acquisition of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance by Morgan
Stanley, net of tax(4)
|
|
6,294
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
6,294
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains and other
investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related to
consolidated sponsored funds and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other seed capital
investments, net of tax(5)
|
|
(2,100)
|
|
(5,131)
|
|
(4,015)
|
|
(59)
|
|
(48)
|
|
|
|
(7,544)
|
|
(14,758)
|
|
(49)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income)
expense of consolidated CLO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
entities, net of
tax(6)
|
|
3,933
|
|
(3,357)
|
|
(4,706)
|
|
NM
|
|
NM
|
|
|
|
14,160
|
|
(8,135)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net excess tax
benefit from stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation
plans
|
|
(2,872)
|
|
(176)
|
|
(1,541)
|
|
NM
|
|
86
|
|
|
|
(8,968)
|
|
(5,404)
|
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
loss(7)
|
|
21,788
|
|
100,450
|
|
-
|
|
(78)
|
|
NM
|
|
|
|
122,238
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income attributable to Eaton
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Vance Corp.
shareholders
|
$
|
101,503
|
$
|
91,830
|
$
|
101,325
|
|
11
|
|
-
|
|
|
$
|
380,904
|
$
|
379,845
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per diluted share
|
$
|
(0.31)
|
$
|
(0.01)
|
$
|
0.96
|
|
NM
|
|
NM
|
|
|
$
|
1.20
|
$
|
3.50
|
|
(66)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees of
consolidated sponsored
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
funds and
consolidated CLO entities, net of tax
|
|
0.01
|
|
0.01
|
|
0.01
|
|
-
|
|
-
|
|
|
|
0.04
|
|
0.04
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-management
expenses of consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
sponsored funds, net
of tax
|
|
0.01
|
|
-
|
|
0.01
|
|
NM
|
|
-
|
|
|
|
0.03
|
|
0.03
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated
stock-based compensation expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related to the
proposed acquisition of Eaton Vance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
by Morgan Stanley,
net of tax
|
|
0.94
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
0.94
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other costs related
to the proposed acquisition of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance by Morgan
Stanley, net of tax
|
|
0.05
|
|
-
|
|
-
|
|
NM
|
|
NM
|
|
|
|
0.05
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gains and other
investment income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related to
consolidated sponsored funds and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other seed capital
investments, net of tax
|
|
(0.02)
|
|
(0.05)
|
|
(0.04)
|
|
(60)
|
|
(50)
|
|
|
|
(0.07)
|
|
(0.13)
|
|
(46)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (income)
expense of consolidated CLO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
entities, net of
tax
|
|
0.03
|
|
(0.03)
|
|
(0.04)
|
|
NM
|
|
NM
|
|
|
|
0.12
|
|
(0.07)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net excess tax
benefit from stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation
plans
|
|
(0.02)
|
|
-
|
|
(0.01)
|
|
NM
|
|
100
|
|
|
|
(0.08)
|
|
(0.05)
|
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
loss
|
|
0.19
|
|
0.90
|
|
-
|
|
(79)
|
|
NM
|
|
|
|
1.06
|
|
-
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
per diluted share
|
$
|
0.88
|
$
|
0.82
|
$
|
0.89
|
|
7
|
|
(1)
|
|
|
$
|
3.29
|
$
|
3.32
|
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes to
Reconciliations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Represents
management fees eliminated upon the consolidation of sponsored
funds and CLO entities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Represents
expenses of consolidated sponsored funds.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Represents
stock-based compensation expense accelerated upon the approval by
the Eaton Vance voting trust of the plan of merger with Morgan
Stanley and associated payroll taxes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Primarily
represents legal and consulting costs related to the proposed
acquisition of Eaton Vance by Morgan Stanley.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Represents gains,
losses and other investment income earned on investments in
sponsored strategies, whether accounted for as consolidated funds,
separate accounts or equity investments, as well as the gains and
losses recognized on derivatives used to hedge these investments.
Stated amounts are net of non-controlling interests where
applicable.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Represents other
income and expenses of consolidated CLO entities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
Represents an
impairment loss recognized on the Company's investment in 49
percent-owned affiliate Hexavest.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
3
|
Components of net
income (loss) attributable
|
to non-controlling
and other beneficial interests
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2020
|
Q4
2020
|
|
|
|
|
|
|
|
|
|
October
31,
|
July
31,
|
October
31,
|
|
vs.
|
vs.
|
|
October
31,
|
October
31,
|
%
|
|
2020
|
2020
|
2019
|
|
Q3
2020
|
Q4
2019
|
|
2020
|
2019
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
sponsored funds
|
$
|
1,040
|
$
|
26,500
|
$
|
6,759
|
|
(96)
|
%
|
(85)
|
%
|
|
$
|
(10,560)
|
$
|
20,081
|
NM
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Majority-owned
subsidiaries
|
|
948
|
|
1,482
|
|
2,985
|
|
(36)
|
|
(68)
|
|
|
|
5,378
|
|
12,760
|
(58)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to non-controlling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other
beneficial interests
|
$
|
1,988
|
$
|
27,982
|
$
|
9,744
|
|
(93)
|
|
(80)
|
|
|
$
|
(5,182)
|
$
|
32,841
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
4
|
|
Consolidated
Balance Sheet
|
|
(in thousands,
except share figures)
|
|
|
|
|
|
October
31,
|
|
|
October
31,
|
|
|
|
2020
|
|
|
2019
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
799,384
|
|
$
|
557,668
|
|
Management fees and
other receivables
|
|
249,806
|
|
|
237,864
|
|
Investments
|
|
783,246
|
|
|
1,060,739
|
|
Assets of
consolidated CLO entities:
|
|
|
|
|
|
|
Cash
|
|
91,795
|
|
|
48,704
|
|
Bank
loans and other investments
|
|
2,064,133
|
|
|
1,704,270
|
|
Other
assets
|
|
28,044
|
|
|
28,039
|
|
Deferred sales
commissions
|
|
60,655
|
|
|
55,211
|
|
Deferred income
taxes
|
|
33,423
|
|
|
62,661
|
|
Equipment and
leasehold improvements, net
|
|
71,830
|
|
|
72,798
|
|
Operating lease
right-of-use assets
|
|
253,109
|
|
|
-
|
|
Intangible assets,
net
|
|
120,175
|
|
|
75,907
|
|
Goodwill
|
|
259,681
|
|
|
259,681
|
|
Loan to
affiliate
|
|
5,000
|
|
|
5,000
|
|
Other
assets
|
|
129,017
|
|
|
85,087
|
|
Total
assets
|
$
|
4,949,298
|
|
$
|
4,253,629
|
|
|
|
|
|
|
|
|
Liabilities,
Temporary Equity and Permanent Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued
compensation
|
$
|
246,129
|
|
$
|
240,722
|
|
Accounts payable and
accrued expenses
|
|
83,991
|
|
|
89,984
|
|
Dividend
payable
|
|
42,988
|
|
|
55,177
|
|
Debt
|
|
621,348
|
|
|
620,513
|
|
Operating lease
liabilities
|
|
301,419
|
|
|
-
|
|
Liabilities of
consolidated CLO entities:
|
|
|
|
|
|
|
Senior
and subordinated note obligations
|
|
1,616,243
|
|
|
1,617,095
|
|
Line of
credit
|
|
43,625
|
|
|
-
|
|
Other
liabilities
|
|
399,562
|
|
|
51,122
|
|
Other
liabilities
|
|
47,454
|
|
|
108,982
|
|
Total
liabilities
|
|
3,402,759
|
|
|
2,783,595
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary
Equity:
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
222,854
|
|
|
285,915
|
|
Total
temporary equity
|
|
222,854
|
|
|
285,915
|
|
|
|
|
|
|
|
|
Permanent
Equity:
|
|
|
|
|
|
|
Voting Common Stock,
par value $0.00390625 per share:
|
|
|
|
|
|
|
Authorized, 1,280,000 shares
|
|
|
|
|
|
|
Issued
and outstanding, 464,716 and 422,935 shares,
respectively
|
|
2
|
|
|
2
|
|
Non-Voting Common
Stock, par value $0.00390625 per share:
|
|
|
|
|
|
|
Authorized, 190,720,000 shares
|
|
|
|
|
|
|
Issued
and outstanding, 114,196,609 and 113,143,567 shares,
respectively
|
|
446
|
|
|
442
|
|
Additional paid-in
capital
|
|
176,461
|
|
|
-
|
|
Notes receivable from
stock option exercises
|
|
(7,086)
|
|
|
(8,447)
|
|
Accumulated other
comprehensive loss
|
|
(63,276)
|
|
|
(58,317)
|
|
Retained
earnings
|
|
1,217,138
|
|
|
1,250,439
|
|
Total
permanent equity
|
|
1,323,685
|
|
|
1,184,119
|
|
Total liabilities,
temporary equity and permanent equity
|
$
|
4,949,298
|
|
$
|
4,253,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Assets under Management and Net Flows by Investment
Mandate(1)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
|
October
31,
|
|
July
31,
|
|
October
31,
|
|
October
31,
|
|
October
31,
|
|
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Equity assets –
beginning of period(2)
|
$
|
133,008
|
|
$
|
122,273
|
|
$
|
128,996
|
|
$
|
131,895
|
|
$
|
115,772
|
|
|
Sales and other
inflows
|
|
5,904
|
|
|
6,587
|
|
|
6,833
|
|
|
28,613
|
|
|
24,852
|
|
|
Redemptions/outflows
|
|
(7,016)
|
|
|
(8,757)
|
|
|
(4,861)
|
|
|
(30,748)
|
|
|
(20,022)
|
|
|
Net
flows
|
|
(1,112)
|
|
|
(2,170)
|
|
|
1,972
|
|
|
(2,135)
|
|
|
4,830
|
|
|
Assets
acquired(3)
|
|
2,163
|
|
|
-
|
|
|
-
|
|
|
2,163
|
|
|
-
|
|
|
Exchanges
|
|
(101)
|
|
|
(19)
|
|
|
(9)
|
|
|
(322)
|
|
|
(10)
|
|
|
Market value
change
|
|
1,216
|
|
|
12,924
|
|
|
936
|
|
|
3,573
|
|
|
11,303
|
Equity assets
– end of period
|
$
|
135,174
|
|
$
|
133,008
|
|
$
|
131,895
|
|
$
|
135,174
|
|
$
|
131,895
|
Fixed income assets –
beginning of period(4)
|
|
68,955
|
|
|
61,347
|
|
|
60,968
|
|
|
62,378
|
|
|
54,339
|
|
|
Sales and other
inflows
|
|
8,546
|
|
|
8,573
|
|
|
5,334
|
|
|
30,103
|
|
|
22,353
|
|
|
Redemptions/outflows
|
|
(3,952)
|
|
|
(4,080)
|
|
|
(4,193)
|
|
|
(19,698)
|
|
|
(17,006)
|
|
|
Net
flows
|
|
4,594
|
|
|
4,493
|
|
|
1,141
|
|
|
10,405
|
|
|
5,347
|
|
|
Assets
acquired(3)
|
|
104
|
|
|
-
|
|
|
-
|
|
|
104
|
|
|
-
|
|
|
Exchanges
|
|
37
|
|
|
51
|
|
|
161
|
|
|
265
|
|
|
627
|
|
|
Market value
change
|
|
(419)
|
|
|
3,064
|
|
|
108
|
|
|
119
|
|
|
2,065
|
Fixed income
assets – end of period
|
$
|
73,271
|
|
$
|
68,955
|
|
$
|
62,378
|
|
$
|
73,271
|
|
$
|
62,378
|
Floating-rate income
assets – beginning of period
|
|
28,569
|
|
|
27,822
|
|
|
38,339
|
|
|
35,103
|
|
|
44,837
|
|
|
Sales and other
inflows
|
|
1,578
|
|
|
1,495
|
|
|
1,289
|
|
|
6,699
|
|
|
8,706
|
|
|
Redemptions/outflows
|
|
(1,458)
|
|
|
(2,068)
|
|
|
(3,890)
|
|
|
(11,668)
|
|
|
(16,988)
|
|
|
Net
flows
|
|
120
|
|
|
(573)
|
|
|
(2,601)
|
|
|
(4,969)
|
|
|
(8,282)
|
|
|
Exchanges
|
|
(22)
|
|
|
4
|
|
|
(67)
|
|
|
(164)
|
|
|
(428)
|
|
|
Market value
change
|
|
293
|
|
|
1,316
|
|
|
(568)
|
|
|
(1,010)
|
|
|
(1,024)
|
Floating-rate
income assets – end of period
|
$
|
28,960
|
|
$
|
28,569
|
|
$
|
35,103
|
|
$
|
28,960
|
|
$
|
35,103
|
Alternative assets –
beginning of period(5)
|
|
7,467
|
|
|
7,226
|
|
|
9,031
|
|
|
8,372
|
|
|
12,139
|
|
|
Sales and other
inflows
|
|
470
|
|
|
575
|
|
|
405
|
|
|
2,218
|
|
|
2,717
|
|
|
Redemptions/outflows
|
|
(560)
|
|
|
(622)
|
|
|
(970)
|
|
|
(2,957)
|
|
|
(6,618)
|
|
|
Net
flows
|
|
(90)
|
|
|
(47)
|
|
|
(565)
|
|
|
(739)
|
|
|
(3,901)
|
|
|
Exchanges
|
|
(1)
|
|
|
(38)
|
|
|
(88)
|
|
|
(53)
|
|
|
(255)
|
|
|
Market value
change
|
|
48
|
|
|
326
|
|
|
(6)
|
|
|
(156)
|
|
|
389
|
Alternative assets
– end of period
|
$
|
7,424
|
|
$
|
7,467
|
|
$
|
8,372
|
|
$
|
7,424
|
|
$
|
8,372
|
Parametric custom
portfolios assets – beginning of
period(6)
|
|
175,039
|
|
|
158,696
|
|
|
159,067
|
|
|
164,895
|
|
|
134,345
|
|
|
Sales and other
inflows
|
|
8,680
|
|
|
9,917
|
|
|
8,358
|
|
|
42,238
|
|
|
36,857
|
|
|
Redemptions/outflows
|
|
(7,359)
|
|
|
(10,385)
|
|
|
(5,496)
|
|
|
(36,561)
|
|
|
(21,941)
|
|
|
Net
flows
|
|
1,321
|
|
|
(468)
|
|
|
2,862
|
|
|
5,677
|
|
|
14,916
|
|
|
Exchanges
|
|
86
|
|
|
3
|
|
|
2
|
|
|
94
|
|
|
58
|
|
|
Market value
change
|
|
(11)
|
|
|
16,808
|
|
|
2,964
|
|
|
5,769
|
|
|
15,576
|
Parametric custom
portfolios assets – end of period
|
$
|
176,435
|
|
$
|
175,039
|
|
$
|
164,895
|
|
$
|
176,435
|
|
$
|
164,895
|
Parametric overlay
services assets – beginning of period
|
|
94,350
|
|
|
87,919
|
|
|
86,379
|
|
|
94,789
|
|
|
77,871
|
|
|
Sales and other
inflows
|
|
21,238
|
|
|
22,638
|
|
|
24,388
|
|
|
94,214
|
|
|
73,376
|
|
|
Redemptions/outflows
|
|
(20,879)
|
|
|
(21,143)
|
|
|
(17,400)
|
|
|
(97,715)
|
|
|
(62,363)
|
|
|
Net
flows
|
|
359
|
|
|
1,495
|
|
|
6,988
|
|
|
(3,501)
|
|
|
11,013
|
|
|
Exchanges
|
|
-
|
|
|
-
|
|
|
-
|
|
|
178
|
|
|
-
|
|
|
Market value
change
|
|
(236)
|
|
|
4,936
|
|
|
1,422
|
|
|
3,007
|
|
|
5,905
|
Parametric overlay
services assets – end of period
|
$
|
94,473
|
|
$
|
94,350
|
|
$
|
94,789
|
|
$
|
94,473
|
|
$
|
94,789
|
Total assets under
management – beginning of period
|
|
507,388
|
|
|
465,283
|
|
|
482,780
|
|
|
497,432
|
|
|
439,303
|
|
|
Sales and other
inflows
|
|
46,416
|
|
|
49,785
|
|
|
46,607
|
|
|
204,085
|
|
|
168,861
|
|
|
Redemptions/outflows
|
|
(41,224)
|
|
|
(47,055)
|
|
|
(36,810)
|
|
|
(199,347)
|
|
|
(144,938)
|
|
|
Net
flows
|
|
5,192
|
|
|
2,730
|
|
|
9,797
|
|
|
4,738
|
|
|
23,923
|
|
|
Assets
acquired(3)
|
|
2,267
|
|
|
-
|
|
|
-
|
|
|
2,267
|
|
|
-
|
|
|
Exchanges
|
|
(1)
|
|
|
1
|
|
|
(1)
|
|
|
(2)
|
|
|
(8)
|
|
|
Market value
change
|
|
891
|
|
|
39,374
|
|
|
4,856
|
|
|
11,302
|
|
|
34,214
|
Total assets under
management – end of period
|
$
|
515,737
|
|
$
|
507,388
|
|
$
|
497,432
|
|
$
|
515,737
|
|
$
|
497,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent-owned Hexavest, which are not included in the table
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Includes balanced
and other multi–asset mandates. Excludes equity mandates reported
as Parametric custom portfolios.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Represents managed
assets gained in the acquisition of the business assets of WaterOak
Advisors, LLC (WaterOak) on October 16, 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Includes cash
management mandates. Excludes benchmark-based fixed income separate
accounts reported as Parametric custom portfolios. Amounts for
periods prior to fiscal 2020 have been revised to reflect the
reclassification of benchmark-based fixed income separate accounts
from fixed income to Parametric custom portfolios in the first
quarter of fiscal 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Consists of
absolute return and commodity mandates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Equity, fixed
income and multi-asset separate accounts managed by Parametric for
which customization is a primary feature; other Parametric
strategies may also be customized. Amounts for periods prior to
fiscal 2020 have been revised to reflect the reclassification of
benchmark-based fixed income separate accounts from fixed income to
Parametric custom portfolios in the first quarter of fiscal
2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
6
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Assets under Management and Net Flows by Investment
Vehicle(1)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
|
October
31,
|
|
July
31,
|
|
October
31,
|
|
October
31,
|
|
October
31,
|
|
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Funds – beginning of
period
|
$
|
176,215
|
|
$
|
160,404
|
|
$
|
173,433
|
|
$
|
174,068
|
|
$
|
164,968
|
|
|
Sales and other
inflows
|
|
13,549
|
|
|
12,816
|
|
|
10,020
|
|
|
52,177
|
|
|
44,337
|
|
|
Redemptions/outflows
|
|
(9,283)
|
|
|
(10,281)
|
|
|
(9,613)
|
|
|
(46,022)
|
|
|
(43,349)
|
|
|
Net
flows
|
|
4,266
|
|
|
2,535
|
|
|
407
|
|
|
6,155
|
|
|
988
|
|
|
Assets
acquired(2)
|
|
237
|
|
|
-
|
|
|
-
|
|
|
237
|
|
|
-
|
|
|
Exchanges
|
|
(4)
|
|
|
1
|
|
|
(1)
|
|
|
(6)
|
|
|
(84)
|
|
|
Market value
change
|
|
706
|
|
|
13,275
|
|
|
229
|
|
|
966
|
|
|
8,196
|
Funds – end
of period
|
$
|
181,420
|
|
$
|
176,215
|
|
$
|
174,068
|
|
$
|
181,420
|
|
$
|
174,068
|
Institutional
separate accounts – beginning of period
|
|
163,818
|
|
|
154,755
|
|
|
165,311
|
|
|
173,331
|
|
|
153,996
|
|
|
Sales and other
inflows
|
|
25,051
|
|
|
26,296
|
|
|
27,342
|
|
|
108,684
|
|
|
85,401
|
|
|
Redemptions/outflows
|
|
(25,070)
|
|
|
(28,399)
|
|
|
(21,782)
|
|
|
(120,787)
|
|
|
(78,471)
|
|
|
Net
flows
|
|
(19)
|
|
|
(2,103)
|
|
|
5,560
|
|
|
(12,103)
|
|
|
6,930
|
|
|
Exchanges
|
|
63
|
|
|
-
|
|
|
4
|
|
|
69
|
|
|
86
|
|
|
Market value
change
|
|
(185)
|
|
|
11,166
|
|
|
2,456
|
|
|
2,380
|
|
|
12,319
|
Institutional
separate accounts – end of period
|
$
|
163,677
|
|
$
|
163,818
|
|
$
|
173,331
|
|
$
|
163,677
|
|
$
|
173,331
|
Individual separate
accounts – beginning of period
|
|
167,355
|
|
|
150,124
|
|
|
144,036
|
|
|
150,033
|
|
|
120,339
|
|
|
Sales and other
inflows
|
|
7,816
|
|
|
10,673
|
|
|
9,245
|
|
|
43,224
|
|
|
39,123
|
|
|
Redemptions/outflows
|
|
(6,871)
|
|
|
(8,375)
|
|
|
(5,415)
|
|
|
(32,538)
|
|
|
(23,118)
|
|
|
Net
flows
|
|
945
|
|
|
2,298
|
|
|
3,830
|
|
|
10,686
|
|
|
16,005
|
|
|
Assets
acquired(2)
|
|
2,030
|
|
|
-
|
|
|
-
|
|
|
2,030
|
|
|
-
|
|
|
Exchanges
|
|
(60)
|
|
|
-
|
|
|
(4)
|
|
|
(65)
|
|
|
(10)
|
|
|
Market value
change
|
|
370
|
|
|
14,933
|
|
|
2,171
|
|
|
7,956
|
|
|
13,699
|
Individual
separate accounts – end of period
|
$
|
170,640
|
|
$
|
167,355
|
|
$
|
150,033
|
|
$
|
170,640
|
|
$
|
150,033
|
Total assets under
management – beginning of period
|
|
507,388
|
|
|
465,283
|
|
|
482,780
|
|
|
497,432
|
|
|
439,303
|
|
|
Sales and other
inflows
|
|
46,416
|
|
|
49,785
|
|
|
46,607
|
|
|
204,085
|
|
|
168,861
|
|
|
Redemptions/outflows
|
|
(41,224)
|
|
|
(47,055)
|
|
|
(36,810)
|
|
|
(199,347)
|
|
|
(144,938)
|
|
|
Net
flows
|
|
5,192
|
|
|
2,730
|
|
|
9,797
|
|
|
4,738
|
|
|
23,923
|
|
|
Assets
acquired(2)
|
|
2,267
|
|
|
-
|
|
|
-
|
|
|
2,267
|
|
|
-
|
|
|
Exchanges
|
|
(1)
|
|
|
1
|
|
|
(1)
|
|
|
(2)
|
|
|
(8)
|
|
|
Market value
change
|
|
891
|
|
|
39,374
|
|
|
4,856
|
|
|
11,302
|
|
|
34,214
|
Total assets under
management – end of period
|
$
|
515,737
|
|
$
|
507,388
|
|
$
|
497,432
|
|
$
|
515,737
|
|
$
|
497,432
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent–owned Hexavest, which are not included in the table
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Represents managed
assets gained in the acquisition of the business assets of WaterOak
on October 16, 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Assets under Management by Investment
Mandate(1)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October
31,
|
|
|
July
31,
|
|
%
|
|
|
October
31,
|
|
%
|
|
|
|
|
2020
|
|
|
2020
|
|
Change
|
|
|
2019
|
|
Change
|
Equity(2)
|
$
|
135,174
|
|
$
|
133,008
|
|
2%
|
|
$
|
131,895
|
|
2%
|
Fixed
income(3)
|
|
73,271
|
|
|
68,955
|
|
6%
|
|
|
62,378
|
|
17%
|
Floating-rate
income
|
|
28,960
|
|
|
28,569
|
|
1%
|
|
|
35,103
|
|
-17%
|
Alternative(4)
|
|
7,424
|
|
|
7,467
|
|
-1%
|
|
|
8,372
|
|
-11%
|
Parametric custom
portfolios(5)
|
|
176,435
|
|
|
175,039
|
|
1%
|
|
|
164,895
|
|
7%
|
Parametric overlay
services
|
|
94,473
|
|
|
94,350
|
|
0%
|
|
|
94,789
|
|
0%
|
Total
|
$
|
515,737
|
|
$
|
507,388
|
|
2%
|
|
$
|
497,432
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent–owned Hexavest, which are not included in the table
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Includes balanced
and other multi–asset mandates. Excludes equity mandates reported
as Parametric custom portfolios.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Includes cash
management mandates. Excludes benchmark-based fixed income separate
accounts reported as Parametric custom portfolios.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Consists of
absolute return and commodity mandates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Equity, fixed
income and multi-asset separate accounts managed by Parametric for
which customization is a primary feature; other Parametric
strategies may also be customized.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Assets under Management by Investment
Vehicle(1)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October
31,
|
|
|
July
31,
|
|
%
|
|
|
October
31,
|
|
%
|
|
|
|
|
2020
|
|
|
2020
|
|
Change
|
|
|
2019
|
|
Change
|
Open-end
funds
|
$
|
108,576
|
|
$
|
104,948
|
|
3%
|
|
$
|
105,043
|
|
3%
|
Closed-end
funds
|
|
23,098
|
|
|
23,214
|
|
0%
|
|
|
24,284
|
|
-5%
|
Private
funds(2)
|
|
49,746
|
|
|
48,053
|
|
4%
|
|
|
44,741
|
|
11%
|
Institutional
separate accounts
|
|
163,677
|
|
|
163,818
|
|
0%
|
|
|
173,331
|
|
-6%
|
Individual separate
accounts
|
|
170,640
|
|
|
167,355
|
|
2%
|
|
|
150,033
|
|
14%
|
Total
|
$
|
515,737
|
|
$
|
507,388
|
|
2%
|
|
$
|
497,432
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent–owned Hexavest, which are not included in the table
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Includes privately
offered equity, fixed and floating-rate income, and alternative
funds and CLO entities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attachment
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Assets under Management by Investment
Affiliate(1)(2)
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October
31,
|
|
|
July
31,
|
|
%
|
|
|
October
31,
|
|
%
|
|
|
|
|
2020
|
|
|
2020
|
|
Change
|
|
|
2019
|
|
Change
|
Eaton Vance
Management(3)(4)
|
$
|
154,394
|
|
$
|
147,165
|
|
5%
|
|
$
|
146,628
|
|
5%
|
Parametric
|
|
310,183
|
|
|
310,557
|
|
0%
|
|
|
306,907
|
|
1%
|
Atlanta
Capital
|
|
24,963
|
|
|
24,982
|
|
0%
|
|
|
24,100
|
|
4%
|
Calvert(5)
|
|
26,197
|
|
|
24,684
|
|
6%
|
|
|
19,797
|
|
32%
|
Total
|
$
|
515,737
|
|
$
|
507,388
|
|
2%
|
|
$
|
497,432
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consolidated Eaton
Vance Corp. See Attachment 11 for directly managed assets and flows
of 49 percent-owned Hexavest, which are not included in the table
above.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
The Company's
policy for reporting managed assets of investment portfolios
overseen by multiple Eaton Vance affiliates is to base the
classification on the strategy's primary identity.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Includes managed
assets of Eaton Vance-sponsored funds and separate accounts managed
by Hexavest and unaffiliated third-party advisers under Eaton Vance
supervision.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Includes managed
assets gained in the acquisition of the business assets of WaterOak
on October 16, 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Includes managed
assets of Calvert Equity Fund, which is sub-advised by Atlanta
Capital, and Calvert-sponsored funds managed by unaffiliated
third-party advisers under Calvert supervision.
|
|
Attachment
10
|
|
|
|
Average Annualized
Management Fee Rates by Investment
Mandate(1)(2)
|
|
(in basis
points on average managed assets)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
|
%
|
%
|
|
|
|
|
|
|
|
|
|
Change
|
Change
|
|
|
|
|
|
|
|
|
|
Q4
2020
|
Q4
2020
|
|
|
|
|
|
|
October
31,
|
July
31,
|
October
31,
|
vs.
|
vs.
|
|
October
31,
|
October
31,
|
%
|
|
|
2020
|
2020
|
2019
|
Q3
2020
|
Q4
2019
|
|
2020
|
2019
|
Change
|
|
Equity(3)
|
56.4
|
55.7
|
56.2
|
1%
|
0%
|
|
56.1
|
56.9
|
-1%
|
|
Fixed
income(4)
|
40.4
|
40.1
|
41.6
|
1%
|
-3%
|
|
40.4
|
41.7
|
-3%
|
|
Floating-rate
income
|
49.1
|
49.9
|
49.3
|
-2%
|
0%
|
|
49.5
|
49.7
|
0%
|
|
Alternative(5)
|
70.5
|
64.3
|
62.7
|
10%
|
12%
|
|
65.2
|
61.4
|
6%
|
|
Parametric custom
portfolios(6)
|
15.5
|
15.5
|
14.8
|
0%
|
5%
|
|
15.2
|
14.8
|
3%
|
|
Parametric overlay
services
|
5.1
|
5.2
|
4.9
|
-2%
|
4%
|
|
5.0
|
5.1
|
-2%
|
|
Total
|
30.5
|
30.3
|
30.8
|
1%
|
-1%
|
|
30.3
|
31.6
|
-4%
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes
performance-based fees, which were $1.5 million in the three months
ended October 31, 2020, $0.9 million in the three months ended July
31, 2020, $0.1 million in the three months ended October 31, 2019,
$5.1 million in the fiscal year ended October 31, 2020 and $1.7
million in the fiscal year ended October 31, 2019.
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Excludes
management fees earned on consolidated investment entities that are
eliminated in consolidation, which were $1.4 million in the three
months ended October 31, 2020, $1.2 million in the three months
ended July 31, 2020, $1.9 million in the three months ended October
31, 2019, $5.8 million in the fiscal year ended October 31, 2020
and $5.5 million in the fiscal year ended October 31, 2019. The
managed assets and flows of consolidated investment entities are
reflected in our consolidated totals.
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Includes balanced
and other multi–asset mandates. Excludes equity mandates reported
as Parametric custom portfolios.
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
Includes cash
management mandates. Excludes benchmark-based fixed income separate
accounts reported as Parametric custom portfolios. Amounts for
periods prior to fiscal 2020 have been revised to reflect the
reclassification of benchmark-based fixed income separate accounts
from fixed income to Parametric custom portfolios in the first
quarter of fiscal 2020.
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Consists of
absolute return and commodity mandates.
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Equity, fixed
income and multi-asset separate accounts managed by Parametric for
which customization is a primary feature; other Parametric
strategies may also be customized. Amounts for periods prior to
fiscal 2020 have been revised to reflect the reclassification of
benchmark-based fixed income separate accounts from fixed income to
Parametric custom portfolios in the first quarter of fiscal
2020.
|
|
Attachment
11
|
|
|
|
Hexavest Inc.
Assets under Management and Net Flows
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
|
|
October
31,
|
|
July
31,
|
|
October
31,
|
|
October
31,
|
|
October
31,
|
|
|
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Eaton Vance
distributed:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eaton Vance sponsored
funds – beginning of period(1)
|
$
|
93
|
|
$
|
70
|
|
$
|
170
|
|
$
|
152
|
|
$
|
159
|
|
Sales and other
inflows
|
|
1
|
|
|
31
|
|
|
1
|
|
|
39
|
|
|
48
|
|
Redemptions/outflows
|
|
(37)
|
|
|
(17)
|
|
|
(24)
|
|
|
(122)
|
|
|
(69)
|
|
Net flows
|
|
(36)
|
|
|
14
|
|
|
(23)
|
|
|
(83)
|
|
|
(21)
|
|
Market value
change
|
|
(1)
|
|
|
9
|
|
|
5
|
|
|
(13)
|
|
|
14
|
Eaton Vance
sponsored funds – end of period
|
$
|
56
|
|
$
|
93
|
|
$
|
152
|
|
$
|
56
|
|
$
|
152
|
Eaton Vance
distributed separate accounts –
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
beginning of
period(2)
|
$
|
584
|
|
$
|
1,001
|
|
$
|
1,745
|
|
$
|
1,563
|
|
$
|
2,169
|
|
Sales and other
inflows
|
|
-
|
|
|
19
|
|
|
2
|
|
|
49
|
|
|
105
|
|
Redemptions/outflows
|
|
(94)
|
|
|
(519)
|
|
|
(226)
|
|
|
(973)
|
|
|
(859)
|
|
Net
flows
|
|
(94)
|
|
|
(500)
|
|
|
(224)
|
|
|
(924)
|
|
|
(754)
|
|
Market value
change
|
|
(11)
|
|
|
83
|
|
|
42
|
|
|
(160)
|
|
|
148
|
Eaton Vance
distributed separate accounts – end of period
|
$
|
479
|
|
$
|
584
|
|
$
|
1,563
|
|
$
|
479
|
|
$
|
1,563
|
Total Eaton Vance
distributed – beginning of period
|
$
|
677
|
|
$
|
1,071
|
|
$
|
1,915
|
|
$
|
1,715
|
|
$
|
2,328
|
|
Sales and other
inflows
|
|
1
|
|
|
50
|
|
|
3
|
|
|
88
|
|
|
153
|
|
Redemptions/outflows
|
|
(131)
|
|
|
(536)
|
|
|
(250)
|
|
|
(1,095)
|
|
|
(928)
|
|
Net
flows
|
|
(130)
|
|
|
(486)
|
|
|
(247)
|
|
|
(1,007)
|
|
|
(775)
|
|
Market value
change
|
|
(12)
|
|
|
92
|
|
|
47
|
|
|
(173)
|
|
|
162
|
Total Eaton Vance
distributed – end of period
|
$
|
535
|
|
$
|
677
|
|
$
|
1,715
|
|
$
|
535
|
|
$
|
1,715
|
Hexavest directly
distributed – beginning of period(3)
|
$
|
6,129
|
|
$
|
7,559
|
|
$
|
11,474
|
|
$
|
11,640
|
|
$
|
11,467
|
|
Sales and other
inflows
|
|
23
|
|
|
30
|
|
|
140
|
|
|
453
|
|
|
1,769
|
|
Redemptions/outflows
|
|
(751)
|
|
|
(2,253)
|
|
|
(321)
|
|
|
(5,678)
|
|
|
(2,574)
|
|
Net
flows
|
|
(728)
|
|
|
(2,223)
|
|
|
(181)
|
|
|
(5,225)
|
|
|
(805)
|
|
Market value
change
|
|
(90)
|
|
|
793
|
|
|
347
|
|
|
(1,104)
|
|
|
978
|
Hexavest directly
distributed – end of period
|
$
|
5,311
|
|
$
|
6,129
|
|
$
|
11,640
|
|
$
|
5,311
|
|
$
|
11,640
|
Total Hexavest
managed assets – beginning of period
|
$
|
6,806
|
|
$
|
8,630
|
|
$
|
13,389
|
|
$
|
13,355
|
|
$
|
13,795
|
|
Sales and other
inflows
|
|
24
|
|
|
80
|
|
|
143
|
|
|
541
|
|
|
1,922
|
|
Redemptions/outflows
|
|
(882)
|
|
|
(2,789)
|
|
|
(571)
|
|
|
(6,773)
|
|
|
(3,502)
|
|
Net
flows
|
|
(858)
|
|
|
(2,709)
|
|
|
(428)
|
|
|
(6,232)
|
|
|
(1,580)
|
|
Market value
change
|
|
(102)
|
|
|
885
|
|
|
394
|
|
|
(1,277)
|
|
|
1,140
|
Total Hexavest
managed assets – end of period
|
$
|
5,846
|
|
$
|
6,806
|
|
$
|
13,355
|
|
$
|
5,846
|
|
$
|
13,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Managed assets and
flows of Eaton Vance-sponsored funds for which Hexavest is adviser
or sub-adviser. Eaton Vance receives management fees (and in some
cases also distribution fees) on these assets, which are included
in the consolidated assets under management, flows and average
annualized management fee rates reported in Attachments 5 through
10.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Managed assets and
flows of Eaton Vance-distributed separate accounts managed by
Hexavest. Eaton Vance receives distribution fees, but not
management fees, on these assets, which are not included in the
consolidated assets under management, flows and average annualized
management fee rates reported in Attachments 5 through
10.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3)
|
Managed assets and
flows of pre-transaction Hexavest clients and post-transaction
Hexavest clients in Canada. Eaton Vance receives no management fees
or distribution fees on these assets, which are not included in the
consolidated assets under management, flows and average annualized
management fee rates reported in Attachments 5 through
10.
|
View original
content:http://www.prnewswire.com/news-releases/eaton-vance-corp-report-for-the-three-months-and-fiscal-year-ended-october-31-2020-301179732.html
SOURCE Eaton Vance Corp.